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New Spanish Law Boosts Crypto Oversight and Asset Seizure Capabilities

Spain has taken significant steps to enhance its oversight of cryptocurrency transactions and holdings through a new law.

This legislation, expected to be enacted by January 2026, allows authorities to gather data on digital assets held on international exchanges.

Additionally, the Spanish tax agency now has the authority to seize cryptocurrency assets from individuals who owe back taxes.

This initiative is part of the broader European Directive on Administrative Cooperation on Tax Transparency for Crypto-Assets (DAC8).

DAC8 aims to improve compliance with tax laws, addressing the challenges that decentralized cryptocurrencies pose for tax agencies.

Under this framework, virtual asset service providers will be required to report user transaction data and holdings to the authorities.

The collaboration between public and private sectors in developing this legislation is seen as essential for creating effective laws.

The new measures intend to expand the tax agency's capacity beyond traditional bank asset seizures, now including digital assets.

The EU anticipates that DAC8 will generate over 2.4 billion euros in tax revenues amid heightened scrutiny.

As the implementation date approaches, both citizens and crypto investors will need to stay informed about these changes and their potential impact.